Slough Property Market in 2021
As we entered the new year, the initial conclusion of the Stamp Duty holiday loomed and instilled a sense of urgency amongst prospective buyers. Causing record-breaking highs across the Rightmove website and boosting estate agent enquiries by over 10%, the Stamp Duty holiday extension was welcomed by the majority of the property market.
With rental enquiries surpassing 20% growth, the potential of commuter towns, such as Slough, was highlighted. As tenants continue to look to the South-East for more affordable living within commutable distance of the capital, annual rental growth across the region has seen 7.8% growth, with the Slough average rent now reaching over £1100 a month.
In contrast to the London market, property prices in Slough are also on an upward trajectory. In the past six months alone, the average property price in Slough has undergone a 9.79% increase, equivalent to £33,043. With the average property in Slough now worth over £370,000, Slough’s sales and rental markets remain thriving, regardless of the challenges presented by Covid-19 and Brexit.
While it could be argued that the Stamp Duty holiday is contributing to this impressive growth, JLL’s predictions for the coming years suggest that the rise of the South-East is here to stay. With an anticipated increase of 17.5% in property prices by 2025, along with an 8% rise in rental prices, Slough’s position as an emerging location continues to be proven.
Slough Supply and Demand
Slough is in the midst of its biggest transformation to date, with a £3 billion regeneration scheme set to continue over the next 15 years. When combined with the forecasted completion of the Elizabeth Line in Q2 2022, the demand for property to rent in Slough is expected to reach new heights.
In 2019, Slough’s population sat comfortably at 149,539, but with tenants now moving up to 40 miles outside of the capital, this commuter town, along with the likes of Bracknell, are prime real estate for tenants. With the Elizabeth Line set to condense the commute to London to just 18 minutes, Slough is anticipating a population increase of nearly 10,000 in 2021 alone.
Regeneration schemes are spiralling throughout the town in an attempt to meet this growing demand, which in turn, is increasing the number of jobs in Slough. In the coming years, the town will be a hub of unique amenities and employment opportunities, with these executive residents searching for contemporary flats to rent in Slough.
With the forecasted growth in both the population and the local area, investors are searching for property for sale in Slough. The likes of New Eton House and The Metalworks are ideal for prospective investors – the stylish apartments are paired with the town’s promising future to make for a potentially lucrative investment asset.
Download the 2021 UK Investment Guide
Want to know more about UK property investment in the year ahead? Get the full UK property forecast and much more with our 2021 UK Investment Guide.
Slough Economic Forecast
Slough already has a thriving business district, with over 6,500 businesses across the town delivering a turnover of £9billion to the local economy. However, as Slough continues to grow, and the Elizabeth Line makes the town significantly more accessible, the number of workers in Slough is set to increase.
Slough is challenging London in many areas, especially in terms of gross added value (GVA) per worker. The UK average hovers around £57,000, whereas London reaches highs of £80,000. But with Slough’s extensive business district, it is no surprise that the town surpasses the capital with £82,000 GVA per worker. Not only does this emphasise the commercial potential of the town, but it also accentuates the demand for property to rent in Slough.
With the vast amounts of investment that is being poured into the town over the next decade, alongside the council’s plans to stimulate mass economic growth, Slough’s economy will continue to thrive. While the regeneration is expected to see 10,000 more jobs in Slough alone, the Crossrail project will connect millions of people to the town.
Although Reading is considered the ‘capital’ of Berkshire, the Slough property forecast, plus the anticipated growth in the town’s economy, could see this economic powerhouse become the leading town in Berkshire within the next 10 years.
Slough Past Performance
While 2020 was a challenge for all industries across the UK, the first half of the year saw businesses diversify and adapt to the unprecedented effects of Covid-19. By the end of 2020, many companies had become accustomed to national lockdowns and stringent restrictions, especially those within the property industry.
Q4 of last year was key to the success of the property market, reporting its fastest rate of rental growth in December since 2016. This 4.1% increase in rental growth was attributed to a significant lag in supply, caused by a combination of affordability and changing attitudes towards renting property.
Although this success had a ripple effect on the majority of regions across the UK, Slough’s property market has demonstrated consistent growth over the past three years, which has obviously impacted the Slough property price forecast. In 2018, property for sale in Slough averaged just £318,000, with year-on-year increases of around 4%-5%.
However, much like the rest of the UK, the Slough property market saw an unexpected number of sales in 2020, averaging £343,000, and with current prices already surpassing expectations, Slough is on track to surpass the forecasted average for 2022.
With rental yields in Slough fluctuating between 4% and 5% over the past 12 months, it is no surprise that Buy-to-Let in Slough made up 15% of the sales agreed in Q4 of last year. As an emerging location, more property investors are considering purchasing flats to rent in Slough as a long-term investment, with the potential for an additional 12% increase providing more incentive for Buy-to-Let investors.
With rental yields in Slough fluctuating between 4% and 5% over the past 12 months, it is no surprise that Buy-to-Let investors made up 15% of the sales agreed in Q4 of last year. As an emerging location, more property investors are considering Slough for Buy-to-Let opportunities, and with the Crossrail project and regeneration schemes in place, the rental market has the potential to expand by 12% over the next four years.
Key Projects Driving Growth in Slough
Regeneration schemes have been driving Slough’s growth for many years, but with major projects continuing to rejuvenate the town, there is promise for Slough to become a UK hotspot. The extensive redevelopments span far and wide and include retail amenities, commercial spaces, leisure facilities and cultural quarters to meet the priorities of local residents.
The Slough Urban Renewal (SUR) scheme has formed a significant part of the town’s regeneration and includes a mixture of redevelopments and new additions. The council’s vision of delivering a well-balanced community, brimming with academic, business and leisure opportunities is at the centre of the project.
SUR has already successfully delivered an extensive, multi-million pound leisure strategy, which saw the rise of premium sporting facilities, from gyms, to ice rinks and swimming pools. Educational facilities also played an integral part in Slough’s regeneration, with primary schools being a particular concern amongst the council. To maximise learning opportunities for students, academic resources have been upgraded and additional classrooms have been constructed.
To meet the increasing housing demand in Slough, a four phase scheme has transformed several disused sites across the borough into housing estates, while future schemes will deliver vibrant apartments, multiple hotels, further housing and communal green spaces.
The regeneration of Queensmere Observatory Shopping Centre will complement the SUR project, with the mixed-use development aiming to transform 14 acres of the town centre. The ambitious plan includes the addition of smart workspaces, an expansion on Slough’s current cultural and civic quarter, a luxurious residential neighbourhood and improved pedestrian facilities. While Slough’s regeneration schemes intend to augment the profile of Slough, this particular plan also has a strong focus on stimulating long-lasting economic growth.
Arguably a catalyst for Slough’s recent popularity and regeneration schemes, the Crossrail project aims to introduce the Elizabeth Line to Slough in Q2 2022. The £17.8 billion railway will connect the likes of Slough and Reading to major destinations, including the UK’s biggest airport, Canary Wharf and London Paddington.
Thousands of people already commute to and from Slough, but with the Elizabeth Line providing direct trains to London every five minutes, this number is expected to continue climbing in the years to come. This increased accessibility will offer a plethora of new opportunities for both London and the South-East, especially surrounding employment – highlighting the demand for property to rent in Slough that would impact the town’s property market.